US Withholding Tax income from securities of United States issuers
A domestic withholding tax rate of approximately 30% is payable for domestic investors on income or dividends from US securities. According to the double taxation agreement between the Federal Republic of Germany and the United States of America, this withholding tax can be reduced to 15% for dividends and up to 0% for interest.
Withholding tax relief can be applied for through a U.S. tax form. This form must already be available with a corresponding income or dividend statement. US tax forms subsequently submitted cannot be considered.
First registration & data collection
When opening a Trader Workstation account, all non-US individuals and entities must complete a W-8 IRS form to confirm the country of their tax residence and to determine whether a reduced withholding tax rate is applicable to them. W-8 forms are not submitted to the IRS.
The W-8 form is automatically filled out for you in the online account application, so you do not need to fill out any additional documents here!
Withholding tax is not automatically withheld in the Trader Workstation account. Your capital is therefore fully available to you, including income and profits, for profitable further investment. Exceptions are direct withholding tax deductions for dividend distributions.
Only in the following year do you declare your accrued capital income as part of your personal tax return. This is possible because the custody account is not in Germany, but at our American partner Interactive Brokers.